Probably the first consideration in opening an online business is the product or service you are going to offer.
You definitely want a real product. Business models that do not offer a real product are only offering an income model, for example enrolling more people in the business. This is a Pyramid scheme, and these are illegal. So does the business you are considering have a real product?
Your real product can be physical or virtual. Physical products come with stocking/warehousing/shipping costs. Virtual products are free from these limitations, however, the world hasn’t quite caught up to our new reality yet, so there may be some expressed doubt as to their reality. You may hear old school people say “oh that’s not a real product, so it’s just a pyramid scheme.” So do you prefer a physical product or a virtual product?
OK, so you have a viable product. Next you want to consider the business model. Is it a stand-alone business? Is it a networked business, and if so, is it affiliate, multi-level, or other? Ensure that you see a complete outline of the business structure, the business costs, and the compensation plan or expected income.
Next up: Income Aspirations
